Factors Affecting on ERP (Enterprise Resources Planning) System Adoption in The Gaza Strip Manufacturing Firms

Abstract

Adopting an ERP (Enterprise Resources Planning) system in Gaza Industries can play a good role in the market, but there are various factors that either encourage the adoption or hinder its adoption. This study illustrate better understanding about adoption factors of ERP system for manufacturing firms at Gaza strip based on viewpoint of business owners and CEOs (Chief Executive Officer), Whole population around 1280 firms (PCBS: Economic Surveys Series, 2013) which are geographically distributed from north to south of Gaza strip and from four industrial sectors which are: Food & Beverage Processing, Textile & Garment, Leathers and Wood Industries. Data collected through questionnaires distributed to a random sample of 300 owners/managers of the firms, Total (222) questionnaires were received and analyzed using descriptive statistics through SPSS program. The results showed that "Palestinian context" dimension has the first rank in terms of importance with relative weight 85.9%, followed by "The perceived benefits of applying ERP systems "with relative weight 75.4%, "Top management support" with relative weight 73.6% and "technological Impacts" with relative weight 71.8%. ”CEO characteristics and attitude towards adoption of IT" with relative weight 71.2% , "ERP system cost" with relative weight 69.3%, "Environmental characteristics" with relative weight 67.6% and " Emlpoyees’s IS knowledge " with relative weight 64.2% , while "The expected complexities of applying ERP systems" come last with relative weight 61.7%. The study recommended to all donors and government to exert more care and sponsor manufacturing sectors in way to encourage them applying ERP systems or similar IT systems. In addition, it recommended PFI (Palestinian Federation of Industries) to support business owners of the manufacturing sectors with awareness courses related to ERP system and learn the best ways to apply ERP and benefit from the advantages and capabilities of applying similar IT systems.